MANILA (XINHUA) – The Philippines and Japan have renewed their Bilateral Swap Arrangement (BSA) effective on January 1, the Philippine central bank said yesterday.
The Bank of Japan, acting as an agent for the Minister of Finance of Japan, and the Bangko Sentral ng Pilipinas (BSP) signed the Fourth Amendment and Restatement Agreement of the Third BSA.
The BSA is a two-way arrangement in which both authorities can swap their local currencies for the United States (US) dollar.
The arrangement also enables the Philippines to swap the Philippine peso against the Japanese yen.
According to the BSP, the size of the BSA remains unchanged, that is, up to USD12 billion or its equivalent in Japanese yen for the Philippines, and USD500 million for Japan.
